House prices drop by 0.2% in May
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House prices dropped by 0.2% from April to May this year despite an annual rise of 8.2%, according to the Land Registry’s House Price Index.
It is the seventh consecutive month when the annual figure has risen but the first monthly decrease since March 2009.
The average England and Wales property price is now £165,314 with all regions experiencing increases in their average property values over the last 12 months.
London has had the biggest increase of 14.2% while the North East saw just 1.8%.
The South East also had the biggest monthly rise 0.9% and the East Midlands had the largest fall of 3.6%.
During March 2010 the number of completed house sales in England and Wales rose by 37% to 48,577 from 35,449 in March 2009.
David Smith, senior partner at property consultancy, Carter Jonas, says: “The May Land Registry statistics are indicative of a market that is beginning to harden at its current level.
“The removal of HIPs has improved stock levels in recent weeks, which is a positive for the market, although there naturally remains uncertainty surrounding impending public sector cuts, higher taxes and the ever-present threat of rate rises, accentuated by the first vote for a rise on the MPC for nearly two years.
“Although the market as a whole is hardening at or around its current level, sought-after properties in desirable locations may see further price rises, whereas undifferentiated properties in certain areas may see falls.”
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